by Calculated Risk on 7/16/2007 06:24:00 PM

Barry has the "very ominous charts".

Update: From Bloomberg: ACA Shares Fall 22 Percent on Subprime Debt Holdings (hat tip jim)

ACA Capital Holdings Inc. ... disclosed that it could lose money on contracts tied to $4.5 billion of subprime mortgage securities from 2006 and 2007.
...
ACA wrote contracts that represented AAA rated pieces of so-called collateralized debt obligations made up of derivative versions of subprime bonds. CDOs package securities such as mortgage bonds, then parcel them out to investors in different slices with different credit ratings. It was part of $15.3 billion total to CDOs of mortgage bonds. ACA also wrote contracts on $400 million in exposure to a CDO of CDO bonds, compared with $911 million of adjusted book value.
...
ACA was the eighth-largest manager of CDOs made up of asset-backed debt or related derivatives on Dec. 31, overseeing 12 vehicles that had issued $10.4 billion in securities, according to Standard & Poor's. Moody's Investors Service said July 11 that it may cut $5 billion of such securities; the firm and rival S&P last week downgraded billions of the underlying bonds.

I don't know if this is related.